Daily Alert – Tuesday 7th June 2022: Target’s second profit warning in three weeks

Mark NugentDaily Alert, June 2022

Daily Alert – Tuesday 7th June 2022: Target’s second profit warning in three weeks

Good morning.

Yesterday saw UK PM Johnson “win” a confidence vote by 59 percent to 41 percent. Tradition, and reality, says he’s finished. The Conservatives will not enter an election campaign with 41 percent of MPs having no confidence in their leader. Game over Boris. I have to say I like the sheer brutality of it. The party comes first.

Risk sentiment was indecisive, and I placed no trades.

Today started with a surprise in Oz. The Reserve Bank of Australia hiked rates by a surprise 50 basis-points to 0.85 percent. The markets were expecting a 25 basis-point hike. This was the largest move in more than 20 years. Governor Lowe indicated additional rate hikes are coming. The AUD barely reacted.

In the US, Target Corp cut its profit forecast for the 2nd time in three weeks – adding to concerns the Fed will tip the US into recession. As a consequence, markets are on the risk-off side of neutral at the time of writing (1pm UK-time).

Later we have Japan GDP and private sector oil inventories. I’ll watch risk sentiment and make any trading decisions later tonight.

There’s no video today as I am travelling.

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